Ronco's Hardware received an invoice for $10,429.38, dated September 17, with terms 3/10, 2/30, n/45. The hardware store pays the invoice on October 5. How much should be paid?
A) $10,116.50
B) $10,220.79
C) $10,328.18
D) $10,429.38

Question

Quizplus · Accepted Answer

The terms 3/10, 2/30, n/45 mean that Ronco's Hardware can take a 3% discount if they pay within 10 days, a 2% discount if they pay within 30 days, and the net amount is due within 45 days. Since the invoice is dated September 17 and the payment is made on October 5, this falls within the 30-day period, making them eligible for a 2% discount. The calculation is $10,429.38 - ($10,429.38 * 0.02) = $10,429.38 - $208.59 = $10,220.79.

Ronco's Hardware Received an Invoice for $10,429